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  • Eurozone inflation arrives at -0.3% YoY in December.
  • Monthly CPI in the bloc rises by 0.3% in December.
  • EUR/USD holds the lower ground around 1.2125 on the data release.

According to Eurostat’s final reading of the Eurozone CPI report for December, the consumer prices came in at -0.3% on a yearly basis, meeting the flash estimate of -0.3% and -0.3% expectations. While the core figures rose by 0.2% versus +0.2% previous and +0.2% expectations.       

On a monthly basis, the bloc’s CPI figure for December accelerated by 0.3% versus 0.3% expectations and -0.3% previous while the core CPI numbers arrived at 0.4% versus 0.4% expected and 0.4% last.

Key details (via Eurostat):

“The lowest annual rates were registered in Greece (-2.4%), Slovenia (-1.2%) and Ireland (-1.0%). The highest annual rates were recorded in Poland (3.4%), Hungary (2.8%) and Czechia (2.4%). Compared with November, annual inflation fell in nine Member States, remained stable in eight and rose in ten.”

“In December, the highest contribution to the annual euro area inflation rate came from services (+0.30 percentage points, pp), followed by food, alcohol & tobacco (+0.25 pp), non-energy industrial goods (-0.14 pp) and energy (-0.68 pp).”

FX implications:

EUR/USD holds the lower ground on the Eurozone inflation release. The spot erased entire gains to now trade flat at daily lows of 1.2119.